Slower growth forecast disappoints travel investors
Airbnb shares fall 6% in premarket trading on Thursday after the company issued a weaker-than-expected outlook for the second half of 2025. The disappointing forecast came despite recent signs of recovery in the travel industry and has raised fresh doubts about the strength of consumer demand.
Airbnb warned of slower growth in bookings, especially when compared to the same period last year, which saw a surge in travel to Asia and Latin America. The company also expects its night bookings growth to moderate in the fourth quarter. Additionally, its implied take rate—revenue as a share of gross bookings—is expected to remain flat in the third quarter.
Sector feels the strain despite signs of recovery
As Airbnb shares fall, the outlook has dampened hopes among investors who were anticipating a travel rebound. Industry players such as United Airlines and Hilton had recently forecasted strong bookings and upbeat fourth-quarter revenues. Booking Holdings also delivered positive results last week, fuelling optimism.
However, Airbnb cited tariffs and inflation as key challenges. Danni Hewson, head of financial analysis at AJ Bell, noted that “the initial tariffs shock in April led to a big drop in bookings,” impacting the company’s margins.
With Airbnb’s cautious guidance, attention now turns to Expedia Group, whose earnings report is due later today. Analysts are watching closely to determine whether the broader US travel market can sustain its momentum.
Stock performance and valuation metrics
So far in 2025, shares of Airbnb and Expedia have both declined by 0.6%, while Booking Holdings has risen by 11.4% in the same period.
Despite its slower growth, Airbnb maintains a forward price-to-earnings (P/E) ratio of 28.41. In contrast, Booking Holdings trades at a more moderate 22.69, and Expedia is valued even lower at 11.57.
with inputs from Reuters